Binance Burns BRL 9 Million to LUNC, But Price Is Unresponsive

Binance announced the first burn of Terra Classic (LUNC) this Monday (3), after collecting the first coins obtained with fees from traders trading the asset on the exchange.

The LUNC brand is a move driven by investors, expecting the stock to lower the existing limit on the maximum circulating supply.

It could remove coins from the network forever and there is hope that it will appreciate Terra Classic, a project created after the collapse of the Terra ecosystem (LUNA), but it lacks a solid market base.

Binance Burns BRL 9 Million to LUNC in First Round

Binance was the first major exchange to announce a program to burn LUNC coins. The Binance program started on September 21 and collected the first coins to be burned until October 1.

In total, 5,595,907,838 LUNCs were collected by the brokerage, that is, more than 5 billion of the coin was burned forever.

In the cryptocurrency market, it is possible to burn coins by sending the assets to an address that no one has control over, or even to a wallet with automatic burning mechanisms. This reduces the overall coin supply and can help create scarcity, which in theory would increase the value of your tokens.

However, the project must also have a development roadmap, but in the case of LUNC, it seems to be just speculation on the market itself. The project brings together a fan base, the “Lunáticos”, who are still waiting for the asset valuation.

The transaction confirming Binance’s burning of LUNC was shared with the public interested in the matter, who should follow the exchange’s efforts on the subject. Finally, the next coin burn is due on October 10, with coins being collected until Saturday (8th).

LUNC plummets with novelty, contrary to what the community wanted

While the community wants a LUNC boost after coin burning, that’s not quite what happened this Monday.

That’s because Terra Classic recorded a 7% drop against the dollar in the past 24 hours, currently listed at $0.00031, showing that it was not responding well to the initial burns promoted by Binance.

Since April 2022, its price is still considered a project that has fallen by 99%, that is, it is still considered dead and, at least in the short term, it has not even been shown that an effort is enough to make the scenario .